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Baker Katz real estate broker Jason Baker and Zeus Mortgage president Steven Kaufman weigh in on home sales in Houston.
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Thank you can't buy some more out pretty good this if the housing market will bring it up for in August home sales hitting a five year -- In the city with a low mortgage rates helping -- to ignite that this city of Houston other governments and accidents.
Breakfast -- is now.
-- -- -- -- Yet the economy here is growing by more than 8% you can see we are on the beautiful beautiful campus of Rice University here.
And we can't -- in the kind of figure out what is in their secret sauce down here why is the economy booming and why for example.
Have home prices -- is in fifteen out of the -- past sixteen years.
That's -- the rest of America certainly wishes they could -- with me now to talk about that is Stephen Kaufman -- mortgage and Jason Baker baker cats thanks to both of you guys for joining us.
And let's get right to it -- home sales here.
Really doing well -- the rest of the country what's the secret is it because of the oil and gas industry.
It's not necessarily because what will -- mystery I think that's a misnomer for Houston yeah we have multiple industries that are doing well we have medical we have manufacturing we have hospitality.
Technology.
That's so I think it is through jobs but it's not just dueling deficit the rest of the country has all those industries as well why why do you think it is that real estate here in the economy in general is doing so well.
And Houston didn't from a residential standpoint he's never really experienced a spike that the rest of the -- -- market -- for -- Solved and consequently we continue to decline at that rapid decline -- a lot of other markets -- Cost of living here's load the climate is good mass transit is strong mean there's a lots of things.
That when people describe -- in the described.
-- circle things yeah.
-- residential lender.
Museum and you have been disdain for the cities especially -- net migration and obviously that helps right yup more people -- bad creates more demand.
Which drives up prices yeah.
What do you lending standards like right now -- -- -- anyone -- comes on buyer but no actually not.
But they're they're tighter and then they word but not as high as most people think.
So -- tell me about that what's a down payment like and are you lending now more than you were say a year ago.
We're -- -- -- more than a year we were a year ago because we're living in Texas so our businesses clothing.
From that standpoint but down payment is still zero possible through Dubai in the -- you rural area where you're buying of the getting it you're a veteran he does -- it's still possible.
But typically they have -- -- -- five and 10%.
-- -- about the commercial market because obviously that is -- good barometer of what's going on with business how much demand is there.
You know it's a good question there is.
Rarely DC residential industrial office and retail trail I mean if we keep strong the same time it typically trail one other.
While the housing market is really strong retail market recovering.
Particularly -- Helms personally -- retail second.
Retailers globally from nationwide especially.
Or working through some -- you know some of their problems and fundamental retail and commercial properties are still struggling.
Where the residential market tends to be -- further ahead.
You know the interesting thing about what he just said is that when manufacturing is doing well in the hell -- of companies are coming in Houston because it's easy to start -- business in Texas yeah and you have -- living low income tax there are no state tax what what that does is it creates jobs.
That's actually true that's one of the big -- really hitting on tonight at 5 PM money with Melissa Francis.
We have a lot of -- on that are gonna talk about why this is such a great place to do business also coming up at one Q we've art -- -- The president -- If that's on markets now with Lori Rothman we're gonna talk about.
Of course the energy industry which is one of the big drivers here in Houston -- -- for.
Half of the jobs that used to account for 87% but now -- diversified across the economy is we're just talking about to back to you guys thank you very much job Melissa Francis Moore throughout the day from Houston now.
